ZETT CORP. (8135) AI Stock Analysis

• Market Cap: ¥11.41B
• Dividend Yield: 3.96%
• Average Volume (3M): 20.40K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.55
• Revenue Growth: 7.77%
• EPS Growth: 247.26%
• Country: JP
• Employees: 584
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 7.74
• Shares Outstanding: 20,102,000
• 10 Day Avg. Volume: 24,910
• 30 Day Avg. Volume: 20,400
• PEG Ratio: 0.01
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 4.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥709.00 ▲(39.57% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by strong financial performance (profitability, growth, low leverage, and solid cash generation). Technicals add support due to a strong uptrend, but near-overbought momentum indicators limit upside in the score. Valuation is supportive with a moderate P/E and a healthy dividend yield.

Positive Factors

Conservative balance sheet and low financial leverage

A conservative capital structure with low debt and a healthy equity ratio reduces financial distress risk and preserves strategic optionality. High ROE cited in the balance sheet summary indicates efficient use of equity capital, supporting durable profitability and capacity to fund growth without excessive external financing.

Strong cash generation and rising free cash flow

Consistent free cash flow growth strengthens self-funding of capex, dividends, and M&A, lowering reliance on markets. Robust operating cash conversion noted in the cash flow summary indicates durable cash generation ability, improving long-term financial flexibility and resilience across business cycles.

Revenue growth combined with improving margins

Sustained revenue expansion with rising gross and net margins signals scalable operations and disciplined cost management. Improved EBIT/EBITDA margins imply structural operating efficiency that supports long-term profitability expansion and competitive positioning in the leisure market over multiple quarters.

Negative Factors

Steep negative EPS growth

A ~66% drop in EPS indicates material earnings volatility or recent adverse items that reduce earnings power. If persistent, such declines constrain reinvestment and dividends, make forecasting harder, and suggest earnings quality or one-off impacts that could impair long-term profit stability.

Exposure to cyclical leisure demand

Operating in the leisure sector exposes revenue and margins to consumer discretionary cycles and macro sensitivity. Even with strong internal metrics, demand swings during economic slowdowns can materially compress utilization, pricing power and near-term cash flows, increasing medium-term business risk.

Limited forward guidance and public disclosures

Absence of formal guidance and no recent news or related articles reduces forward visibility into management's roadmap. That limited disclosure hinders investors' ability to assess execution risk, strategic priorities, and near-term capital allocation, raising governance and forecasting uncertainty.

ZETT CORP. Business Overview & Revenue Model

Company Description

Zett Corporation manufactures, sells, imports, and exports sports equipment in Japan. The company offers baseballs, basketball wear, bats, and other apparel products. It also operates Alcanet, an online ordering system to search and order products from approximately 3,000 dealers. The company was formerly known as Watanabe Corporation and changed its name to Zett Corporation in 1980. Zett Corporation was founded in 1919 and is headquartered in Osaka, Japan.

How the Company Makes Money

ZETT CORP. generates revenue primarily through the sale of its sports equipment and apparel. The company's key revenue streams include direct sales to consumers via retail stores and online platforms, as well as wholesale distribution to sporting goods retailers. Additionally, ZETT benefits from partnerships with sports teams and organizations, which often involve sponsorship agreements and co-branding opportunities that enhance visibility and drive sales. The company's focus on research and development allows it to introduce new products that meet evolving consumer needs, further contributing to its revenue growth.

ZETT CORP. Financial Statement Overview

Summary

Strong, improving profitability and revenue growth (income statement score 85), a conservatively levered and high-quality balance sheet with low debt and strong ROE (balance sheet score 88), and solid cash conversion with improving free cash flow (cash flow score 83).

Income Statement

ZETT CORP. has demonstrated strong performance in the income statement with notable revenue growth, especially in the last fiscal year. The Gross Profit Margin and Net Profit Margin have shown consistent improvement, indicating efficient cost management and profitability. The EBIT and EBITDA margins suggest robust operational efficiency. The Revenue Growth Rate is commendable, reflecting the company's ability to expand its market presence effectively.

Balance Sheet

The balance sheet exhibits a strong financial position with a low Debt-to-Equity Ratio, indicating conservative leverage and low financial risk. Return on Equity is impressive, showcasing the company's ability to generate profits from shareholders' investments. The Equity Ratio is healthy, highlighting a robust capital structure with a significant proportion of assets financed by equity.

Cash Flow

ZETT CORP. has shown significant improvement in cash flow metrics, with substantial Free Cash Flow growth, reflecting effective cash management. The Operating Cash Flow to Net Income Ratio is strong, indicating efficient conversion of earnings into cash. The Free Cash Flow to Net Income Ratio further reinforces the company's ability to generate cash from its operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	56.24B	55.31B	51.96B	49.89B	44.76B	37.61B
Gross Profit	9.63B	9.46B	9.12B	9.16B	8.37B	6.86B
EBITDA	1.19B	4.36B	1.17B	1.35B	957.00M	16.89M
Net Income	2.85B	2.99B	810.00M	905.00M	723.00M	109.00M
Balance Sheet
Total Assets	32.31B	32.76B	29.54B	28.86B	25.31B	23.00B
Cash, Cash Equivalents and Short-Term Investments	9.60B	9.08B	6.31B	6.23B	5.17B	5.14B
Total Debt	1.16B	47.00M	241.00M	325.00M	531.00M	738.00M
Total Liabilities	17.94B	18.20B	16.23B	15.93B	14.12B	13.08B
Stockholders Equity	14.37B	14.55B	13.30B	12.93B	11.19B	9.92B
Cash Flow
Free Cash Flow	0.00	2.00B	555.00M	1.38B	313.00M	1.09B
Operating Cash Flow	0.00	2.05B	684.00M	1.47B	437.00M	1.24B
Investing Cash Flow	0.00	890.00M	-332.00M	-86.00M	-137.00M	-138.00M
Financing Cash Flow	0.00	-383.00M	-277.00M	-336.00M	-281.00M	558.00M

ZETT CORP. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 508.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8135, the sentiment is Positive. The current price of 508 is below the 20-day moving average (MA) of 564.10, below the 50-day MA of 544.06, and above the 200-day MA of 470.53, indicating a bullish trend. The MACD of 13.60 indicates Negative momentum. The RSI at 56.96 is Neutral, neither overbought nor oversold. The STOCH value of 60.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8135.

ZETT CORP. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7608	82 Outperform	¥15.32B	12.42	―	2.37%	―	―
8135	81 Outperform	¥11.41B	12.52	―	3.96%	7.77%	247.26%
7847	75 Outperform	¥4.22B	23.25	―	4.78%	-11.24%	-48.52%
7809	70 Outperform	¥11.86B	8.49	―	2.70%	9.10%	27.73%
7841	62 Neutral	¥11.00B	18.47	―	3.31%	3.14%	-40.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7865	42 Neutral	¥1.68B	210.15	―	―	―	―